2.17 Provisions
Provisions are recognised when the Company has a present obligation as a result of a past event, it is probable that
an outflow of funds will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.
Provisions are not recognised for future operating losess.
If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is
recognised as a finance cost.
3 Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
4 Earnings per share (‘EPS’)
The basic earnings per equity share is computed by dividing the net profit or loss attributable to the equity shareholders
for the year by the weighted average number of equity shares outstanding during the reporting year. The number of
shares used in computing diluted earnings per share comprises the weighted average number of shares considered
for deriving basic earnings per share, and also the weighted average number of equity shares which may be issued on
the conversion of all dilutive potential shares, unless the results would be anti-dilutive.
5 Critical estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, may not equal the actual
results. Management also needs to exercise judgement in applying the entity's accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those
originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes
together with information about the basis of calculation for each affected line item in the financial statements.
Recognition and measurement of defined benefit obligations:
The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial
assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The
discount rate is determined by reference to market yields at the end of the reporting period on government bonds.
The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit
obligations.
Estimation of useful life:
Useful lives of PPE and intangible assets are based on the estimation by the management. The useful lives as
estimated are the same as prescribed in Schedule II of the Companies Act, 2013. In such cases, where the useful
lives are different from that prescribed in Schedule II, they are based on management estimates, taking into account
the nature of the asset, the estimated usage of the asset, the operating conditions of the asset and past history of
replacement. Assumptions also need to be made, when the Company assesses, whether an asset may be capitalised
and which components of the cost of the asset may be capitalised.
The useful lives and residual values of Company's assets are determined by the management at the time the asset is
acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets.
Note : 1. During the year ended on 31 March 2026 and 31 March 2025, there is no impairment loss determined at each level
of CGU. The recoverable amount was based on value in use and was determined at the level of CGU.
Note : 2. Refer Note - 15(a) for information on moveable property, plant and equipment pledged as security by the Company.
Note : 3. The Company has availed the deemed cost exemption and used the previous GAAP net carrying amount of
property, plant and equipment as deemed cost except few PPE which is measured at fair value.
Note : 4. Tangible/Intangible assets are subject to first charge to secure the Company's term loan and cash credit loans
(refer note 15(a))
Estimation of fair value
The Company has obtained independent valuation of its flats located at Bandra West and Andheri West based on
current prices in an active market for properties of similar nature. The fair values of such investment flats have been
determined by an independent valuer during 2024-25. The main inputs used are the rental growth rates and a study of
the micro market in discussion with industry experts. Resulting fair value estimate for investment property are included
in level 2.
Nature and purpose of other reserves
Securities premium reserve :
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance
with the provisions of the Act.
Capital reserve :
Capital Reserve is the part of the profit or surplus, maintained as an account in the Balance Sheet that can be used
only for special purposes.
(i) Defined Contribution Plan
The Company's contributions to Defined Contribution Plans namely Employees Provident Fund and Employee's
State Insurance Fund (under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act,
1952), which are Defined Contribution Plans, are charged to Statement of Profit and Loss on accrual basis. The
obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive
obligation.
Amount of Rs. 2,545,767 (Previous year : Rs. 1,999,385) is recognised as expense and included in the above Note
24
(ii) Post Employment Obligations:
Gratuity : The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days
salary multiplied for the number of years of service. The gratuity plan is a funded plan and it is recognised by the
Income-tax authorities and administered through LIC. Liability for Gratuity is provided on the basis of Valuations, as
at Balance Sheet date, carried out by an independent actuary.
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of
the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has
been applied as when calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the
prior period.
Expected contributions to post employment benefit plan for the year ending March 31,2026 is Rs. 15 Lakhs (March
31,2025 : Rs. 15 Lakhs)
(iii) Other Long Term Benefit Plans:
Compensated absences : The leave obligations cover the Company's liability for earned leave. The amount of
provision of Rs. 5,73,564 (March 31,2025: Rs. 5,57,859)
Liability for Leave Obligation is provided on the basis of Valuations, as at Balance Sheet date, carried out by an
independent actuary.
(G) Risk exposure
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:
Asset volatility - The plan liabilities are calculated on the basis of the market yields at the valuation date on
government bonds for the expected term. If plan assets underperform this yield, this will create a deficit.
Changes in bond yields - A decrease in bond yields will increase plan liabilities, although this will be partially offset
by an increase in the value of the plan's assets.
(i) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair value of financial instruments that
are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value,
the Company has classified its financial instruments into the three level prescribed under the accounting standard.
An explanation each level follows underneath the table.
Financial instruments measured at Fair value
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity
instruments, traded bonds and mutual funds that have quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates.
If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.
There are no recurring fair value measurements for any financial instruments as at March 31, 2025 and
March 31,2026.
The Company's activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk
which the Company is exposed to and how it manages those risks.
(A) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument leading to a financial
loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including cash and cash equivalents and deposits with banks.
(i) Credit risk management
(a) Trade receivable related credit risk
The Company evaluates the concentration of risk with respect to trade receivables as low. The maximum exposure
to credit risk at the reporting date is the carrying value of each class of financial assets.The Company provides
for expected credit loss on trade receivables based on expected credit loss method. Each outstanding customer
receivables are regularly monitored and if outstanding is above due date the further shipments are controlled and can
only be released if there is a proper justification.
Credit risk from balances with banks is managed by Company in accordance with the Company policy. The other
financial assets are from various forum of Government authorities and are released by Government authorities on
completion of relevant terms and conditions for the release of outstanding.
(B) Liquidity risk
The Company manages liquidity risk by continuously monitoring forecast and actual cash flows on daily, monthly
and yearly basis. The Company ensures that there is a free credit limit available at the start of the year which
is sufficient for repayments getting due in the ensuing year. Loan arrangements, credit limits with various banks
including working capital and monitoring of operational and working capital issues are always kept in mind for better
liquidity management.
(i) Financing arrangements
The Company did not had any undrawn borrowing facilities at the end of the reporting period:
(i) Maturities of financial liabilities
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with
agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash
flows of financial liabilities based on the earliest date on which the Company can be required to pay. To the extent
that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the
reporting period. The contractual maturity is based on the earliest date on which the Company may be required to
pay.
(C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of two types of risks - interest rate risk & currency risk. Financial instrument
affected by market risks includes loans and borrowings, deposits and other financials assets.
The Company has designed risk management frame work to control various risks effectively to achieve the business
objectives. This includes identification of risk, its assessment, control and monitoring at timely intervals.
(i) Foreign currency risk
The Indian Rupee is the Company's functional and reporting currency. The Company has limited foreign currency
exposure which are mainly in cash. Foreign currency transaction exposures arising on internal and external trade
flows are not material and therefore not hedged. Foreign currency risk is the risk that the fair value or future cash
flows of an exposure will fluctuate due to changes in foreign exchange rates. This is the risk that the Company may
suffer losses as a result of adverse exchange rate movement during the relevant period.
The carrying amounts of the entity's foreign currency denominated monetary assets and monetary liabilities at the
end of the year, which are not hedged are as follows:
35 Capital management
For the purpose of the Company's capital management, equity includes issued equity capital, share premium and
all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's
capital management is to maximise the shareholder value.The Company's Capital Management objectives are to
maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may
be available in future so as to maximize shareholders' value. The Company is monitoring capital using debt equity
ratio as its base, which is debt to equity. The company's policy is to keep debt equity ratio below three and infuse
capital if and when required through issue of new shares and/or better operational results and efficient working capital
management. In order to achieve the aforesaid objectives, the Company has not sanctioned any major capex on new
expansion projects in last two to three years There is constant endeavour to reduce debt as much as feasible and
practical by improving operational and working capital management.
Notes
1) Unless specified, the amounts are excluding penalty and interest, if any, that would be levied at the time of final
conclusion.
2) The Company is party to various legal proceedings in the normal course of business and does not expect the
outcome of these proceedings to have any adverse effect on the financial conditions, results of operations or cash
flows.
3) In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of
business. The Company has reviewed all its pending litigations and proceedings and has adequately provided for
where provisions are required and disclosed as contingent liability, where applicable in its financial statements.
The Company's management does not reasonably expect that these legal actions, when ultimately concluded and
determined, will have a material and adverse effect of the Company's results of operations or financial condition.
4) The Company has availed the benefit of payment of customs duty and other duties at a concessional rate on import of
capital goods, under the Export Promotion Capital Goods (‘EPCG') Scheme, against fulfillment of export commitment
over eight years from the date of issue of the license. The Company's bankers have provided guarantees amounting
to Rs 16,262,310 (31 March 2025: Rs 17,632,440) to the Customs and other statutory authorities, on behalf of the
Company, towards fulfilment of these commitments. The Company believes that the export commitment obligations
will be fulfilled and accordingly does not expect any custom and other duties, penalty or interest to be levied with
respect to non-fulfillment of the terms and conditions of the EPCG scheme.
40 Expenditure in foreign currency (on accrual basis)
During the year, no expenditure incurred in foreign currency.
41 Earnings in foreign exchange (on accrual basis)
Earnings in foreign currency for the year ended 31 March 2026 is Rs. 104.37 Lacs (31 March 2025 Rs 98.03 Lacs).
42 Public Interest Litigations (‘PIL') had been filed alleging that the Maharashtra Film, Stage and Cultural Development
Corporation Limited (‘MFSCDCL') had not followed proper procedure while entering into a Joint Venture Agreement
(‘JVA') with the Company and in the subsequent allotment of 20 acres of land to the said joint venture, Whistling
Woods International Limited (‘WWI'), a subsidiary of the Company. During the year 2011-2012, pursuant to the Order
of the Hon'ble High Court of Judicature at Bombay (‘High Court') dated 9 February 2012, inter-alia, the JVA with
MFSCDCL was quashed / rendered cancelled, WWI was ordered to return the land to MFSCDCL and pay rent (and
interest on arrears) retrospectively on the entire land since the date of the JVA. Of the total land admeasuring 20
acres, 14.5 acres vacant unused land was handed over to MFSCDCL on 18 April 2012 and the balance was to be
handed over on or before 31 July 2014. Pending discussion and / or agreement with MFSCDCL and / or clarifications
to be sought from the concerned parties, no adjustments have been made to the Share Capital structure of WWI
and the carrying value of the land rights in its books of account. However, in terms of the Order of the High Court,
the said amount together with future rent till the date of vacation of the premises is adjustable against the market
price of the Institute building of WWI on the said land. The valuation is to be carried out by an expert valuer to be
appointed by the Government. During the year 2013-2014, the PWD Engineer has given his valuation report based
on the Balance Sheet of WWI as at 31 March 2011. Further, the Company made an application to the Government
of Maharashtra in February 2013 to appoint expert valuers to determine the market price. WWI's petition for special
leave to file appeal with the Supreme Court of India was dismissed. However, the Company and WWI filed review
petitions with the High Court. In terms of Order dated 9 February 2012 passed by the High Court, MFSCDC raised
net demand of Rs. 591,966,210 and asked WWI to vacate the premises. The Company's and WWI's Review Petitions
were heard by High Court and a stay was granted on 30 July 2014. The High Court ordered the Company / WWI
to pay arrears of rent for the years 2000-2001 to 2013-2014 aggregating to Rs 100,038,000 by January 2015 and
to pay rent of Rs 4,500,000 per annum from the financial year 2014-2015. As per the terms of the said Order, till 31
March 2026 Rs 113,538,000 has been paid by the Company and Rs 36,000,000 has been paid by WWIL. The State
Government of Maharashtra and MFSCDCL challenged the Order of the Bombay High Court in the Supreme Court
which was dismissed by the court on 22nd September 2014 with recourse to the State Government of Maharashtra
to make an application to the High Court. Pending final disposal of the review petitions and valuation of the building,
and in view of the future plans for WWI which are being evaluated, management believes that the Company's
investments in WWI aggregating Rs 399,511,218 and amounts due therefrom aggregating Rs 441,290,157 are good
and recoverable as management is hopeful of reliefs based on the issues involved and on merits of the case, as also
of a high valuation of the building. The amounts so paid/ being paid by the Company have been treated as Deposits
in the standalone financial statements to be adjusted on the settlement of the case.
Amount of further interest remaining due and payable even in the succeeding years, until such date when the
interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible
expenditure under Section 23 of the MSMED Act.
Note:- This information has been given in respect of such vendors to the extent they could be identified as Micro and
Small enterprises on the basis of informations available with the company.
46 The Company has a process whereby periodically all long term contracts are assessed for material foreseeable
losses. At the year end, the Company has reviewed that there are no long-term contracts including derivative
contracts for which there were any material foreseeable losses.
47 Pursuant to the provisions of the Companies Act, 2013 read with Investor Education Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016 as amended, the shares pertaining to which dividend remains
unclaimed/ unpaid for a period of seven years from the date of transfer to unpaid dividend account are mandatorily
required to be transferred to the Investor Education and Protection Fund (‘IEPF') established by the Central
Government.
48 Pursuant to the Government of India's notification of four consolidated Labour Codes on 21 November 2025,
the Company has assessed and accounted the one-time statutory impact primarily resulting from revised wage
definitions on gratuity Rs. 3.75 lakhs in current year, in accordance with actuarial evaluations and Institute of
Chartered Accountants of India (“ICAI”) guidelines. The Group will continue to closely monitor ongoing regulatory
developments and update its accounting practices as necessary.
49 Other information
Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the
Company for the year/period.
50 Prior period comparatives
The figures for the previous year have been reentityed/ rearranged as necessary to conform to the current year's
presentation.
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